Boat refinance

[Shiver]

I have found a boat that is for a pretty good deal and I would like to purchase it this weekend. I was going to go through Essex for financing but after gathering the docs and signing it wouldn’t be until next before I could get the boat. I bank through navy fed but they do not have the best rates/ terms, but I could go in and come out same day with financing. I was thinking about purchasing the boat with navy fed and then refinancing through Essex a couple of weeks later. Has anyone done this or is this even possible to this?

 

[arlowe13]

Even if the banks would let you do it, I still wouldn't due to the double hit on your credit report/score.

 

[Adubbs76]

I would call and ask Essex if the would refi for you. I know around here there is a Credit union that refis car loans. In some cases you may need to keep the original loan for 3 to 6 months before you can pay off with out paying a penalty.

Years ago I worked in financing and one thing I know is the way credit scores are calculated are a closely guarded secret. One thing I know is even if he refinances his loan rather quickly it shouldn’t hurt his credit. It’s also A myth that multiple credit checks in a short period of time will lower your score. Their algorithm knows you are probably shopping around.

 

[Shiver]

I would call and ask Essex if the would refi for you. I know around here there is a Credit union that refis car loans. In some cases you may need to keep the original loan for 3 to 6 months before you can pay off with out paying a penalty.

Years ago I worked in financing and one thing I know is the way credit scores are calculated are a closely guarded secret. One thing I know is even if he refinances his loan rather quickly it shouldn’t hurt his credit. It’s also A myth that multiple credit checks in a short period of time will lower your score. Their algorithm knows you are probably shopping around.

I have emailed Ricky Aubrey the representative for Essex and confirmed that they can refi when the registration comes in, and I believe Navy Fed does not have an early payoff penalty but I will have to check.

 

[BoaterGuy]

Couldn't you just give a down payment to secure it?

Seems silly that you would have to do this because the seller may sell to someone else with quicker access to funding. That would be a seller I wouldn't want to work with.

 

[seanmclean]

Multiple inquiries of the same type within a window (about a month, I think) all count as one. Since it's a used boat, there shouldn't be any rate difference going somewhere else for a refi. Make sure you check out southeastfinancial, too - they beat Essex by several percent for me.

 

[Shiver]

Couldn't you just give a down payment to secure it?

Seems silly that you would have to do this because the seller may sell to someone else with quicker access to funding. That would be a seller I wouldn't want to work with.

The boat is a 7 hour drive one way. I would like to go look and purchase the same day since that is a haul one way.

 

[Shiver]

Multiple inquiries of the same type within a window (about a month, I think) all count as one. Since it's a used boat, there shouldn't be any rate difference going somewhere else for a refi. Make sure you check out southeastfinancial, too - they beat Essex by several percent for me.

I tried them and so far Essex has the best rates and terms for me.

 

[Ronnie]

I financed though Essex for my second and fourth/current jet boat and they were fine. Here in CA the lender is Bank of the West. No early termination fees and they did let me refinance my currents boat loan, but since my balance dropped below their threshold I was put in a my term was reduced from 15 to 10 years. Also don’t be surprised if/when the fees for the second loan are just as much if not more than the first loan.

For context I had boat fever, the got to get a newer boat now attitude so I financed it all even the tax and registration on a short 15 year loan so th monthly payments would be low. Within a month I was able to sell my third (first Yamaha) jet boat and I paid down the quite a bit. A month later I called to refi was given a ten year term and paid it off in two years. For me the interest rate did not matter much because my intent was always to pay th boat off early, it sucks in the off season when you have to make payments on a boat you can’t even use. If I was going to keep the loan in place for a awhile I would have shopped for the lowest interest rate.

 

[2kwik4u]

I do this on almost every large purchase I make. The last 4 cars, and this boat. If I have to get a loan, I'll finance through whomever the dealer is comfortable with. I turn around and refi with my credit union within a week. The only loss IMO is the fees associated with the first loan. You don't get those back. Ever. I also typically finance EVERYTHING (tax/title/license/fees/etc) on initial purchase, just so I don't have to write a check or deal with verifying funds or any of that BS that dealers can sometimes try to pull. When doing the refi I put whatever I had set aside as a down payment/cash portion into the loan at that point. No additional cost since I'm refi'ing within a week.

My credit union has been exceptionally good to me over the years, and have earned my business. Lost my job a few months back and was given a months extension on loans so that I didn't hurt my credit while I found another job. Bought a truck out of Canada a few years back and they handed me a check to take with me to pay for it, when typically they don't release funds until the vehicle is titled with a lien holder. Their rates are always the lowest I can find, and I can typically do the deal over the phone, then just sign papers when it's convenient. Couple times now the loan officer has stopped by my house on his way home and we've signed papers over a cold beverage on the back deck.

 

[adrianp89]

If the boat is right for you, and is a great deal then do it. The seller may be motivated and I would not blame him for taking first person with money in hand, I would do the same.... too many flakes out there for me to pass up a sale and wait another 6 months to sell it.

If there was any credit hit, it would negligible. We are talking maybe 10-15 points max... and unless you plan on making another big purchase in the next year and have good credit already... who cares? Situations like this is why you have good credit.

 

[robert843]

I have done this with cars before multiple times no issues. I did finance my current boat through Yamaha’s financing using 12 months 0% interest then just moved it to my credit union at 1.9% interest for 60 months after that.

 

[Matts18]

Your plan is solid. I too have done this many times when there is an extra rebate for financing through, for example, Ford Motor Credit. I bought two F 150s and took the extra rebate and then refinanced the day I recieved my first statement. I can’t image many reputable lenders charge a prepayment penalty on this type of consumer loan (it is illegal in many states) and as others have mentioned if you do it fast enough the credit inquiry probably won’t count against your score.

However, I would be really surprised if you can’t find a local lender that will match the Essex Rate if you ask.

 

[Beachbummer]

Check lightstream for rates too. Money up front, and pretty decent rates.